I have a Fico score of 700++, what will happen if I pay off half my credit cards at once?

Answer 1

Your score will increase slightly.

65% of your credit score is based on timeliness of payments and amount of outstanding credit.

Lowering your outstanding credit, raises your score.

But since you are already over 700, it won't raise it that much.

Since you already have a decent score, I'd pay off only some of the cards and invest the rest into some decent savings vehicle.

Answer 2

You will owe half as much in credit card debt.

Do not close those accounts though, or you may lower your credit score.

Credit scores are based on your credit history. ie. how much, how long and current standing.

If you pay off your oldest card and then close it down that good mark goes away. Im not sure why paying off a car loan doesn't cause the same problem. But I work in Real Estate and every lender I know says the same thing.

Pay down debt, just don't cancell the card.

Answer 3

what will actually happen is that your debt to income ratio will go down, which will increase your credit score, but not by much. remember, if you intend to keep those cards open you will still need to use them periodically, as part of the score is based on utilization. one thing people dont understand about your credit score is that it is more about how much money lenders will make off of you and whether or not you can pay it back than about how much or little you owe. hope that makes sense, i used to work for a major credit card company, so credit is something i studied and learned a lot about. also, paying off a credit card in full still makes the companies money, as every time you use your card, paid in full or not, the company gets a kickback from the licencer(visa,amx,discover,mastercard)

Answer 4

Probably not much, although nobody but the programmers at Fair Isaac can say for sure. But you should do it anyway, if for no other reason that the finance charges on credit card balances are generally excessive. Far better to pay them off in full each month -- and that won't hurt your credit score one bit.

Answer 5

Your FICO score would go up if you still keep those accounts open. This happen because you would have a higher (unused) credit.

Answer 6

you want to go away your credit charges open with low to no stability. do no longer close the account go away them open. a huge part of your score relies upon on the length of time that you've had open credit lines in solid status. So and open account without stability is an fairly solid element. once you pay your charges to a nil stability this is going to take sometime 30-60 days for that information replace for your credit report. once the account stability information is as a lot as date your credit status will initiate to strengthen. The longer the account is open in solid status with a low or no stability the better your score will climb. fixed fee loans alongside with vehicle loans and private loan loans in solid status for twenty-four+ months will convey your score into the mid seven hundred's. credit status swings from mid seven hundred's to mid 600's are commonly by using severe mastercard balances. be careful doing 0% rollovers this may properly be a huge capture. Doing this may decrease your credit status for countless motives. a million)Your stability to credit reduce ratio will be severe, this lowers your score. 2)once you open the hot 0% account the credit reporting organizations weight your score on the variety of up to date charges you've and the length of time because you've opened you new charges. 3)once you be conscious for the hot account it is an inquiry, distinct inquiries decrease your score. this may damage your score yet when there open already its advantageous do not close them. it is a income on your mastercard organizations because in case your score is decreased then your locked in with them. If something occurs, you previous due on a charge however if its “lost in the mail” your expenditures bounce as a lot as twenty% and also you lock in with a severe fee on a huge stability. This =$$$$ on your lenders.

Answer 7

Then youll be halfway to being DEBT FREE!!!!

wish I wuz you.